Retail Trend: Social Commerce
One of the trends we’re definitely keeping an eye on in 2020 is social commerce. Heard of it? Essentially, social commerce is when companies sell their products through a social media platform. We’re not talking redirecting them to an ecommerce website via social media—we’re talking making an actual purchase through the social media platform itself. And with more and more consumers opting against brick-and-mortar shops in favor of their mobile devices, it makes sense that social commerce will kick it into high gear this year.
Instagram is one of the leaders in the social commerce trend. Thanks to influencer marketing, bloggers in the fashion and beauty industry have taken this social media platform by storm—and are raking in the dough because of it. Influencers have a large following online and are often approached by brands to market and recommend clothing, makeup, skincare, you name it. Once the endorsement spreads to their followers, a purchase is made—either through the store itself, the website, or the company’s app. With social commerce, the step of leaving the social platform to purchase is eliminated. Consumers can now buy these influencer-marketed goods directly from the platform on which they saw them. In many cases, Instagram.
In 2019, Instagram launched a checkout option called Instagram Checkout for select brands that allows consumers to simply tap an item they see in their feed and make a purchase. Convenient? You bet. And with 87% of consumers claiming that social media is key to helping them decide what to purchase, it makes perfect sense to turn that same platform into an ecommerce experience.
Facebook, which purchased Instagram in 2012, offers similar social commerce with its Facebook Marketplace. Akin to Craigslist or Etsy, Marketplace is a location where users can purchase or sell items with people in their community—right through the Facebook platform. And Pinterest offers buyable pins that work much the same way as Instagram’s shoppable posts.
All this being said, there’s a long way to go—and a ton of potential—when it comes to social commerce. We predict more and more brands will jump on the trend, increasing engagement and revenue all at once. And if your business already has an ecommerce site, think of these social media platforms as another virtual storefront—minus the rent.
The key takeaway from this 2020 retail trend prediction is that it pays to invest in your social media strategy, now more than ever. Set aside funds that you can dip into for additional research, marketing materials, and windows of opportunity to make this your best social media year yet. Why wait? Swing by ARF Financial and get an offer. We’ll quickly let you know the loan amount you qualify for, and can get your funds secured in as little as three days.